<SUBMISSION>
<ACCESSION-NUMBER>0000703351-05-000026
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20041229
<FILING-DATE>20050207
<DATE-OF-FILING-DATE-CHANGE>20050207
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>BRINKER INTERNATIONAL INC
<CIK>0000703351
<ASSIGNED-SIC>5812
<IRS-NUMBER>751914582
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-10275
<FILM-NUMBER>05580172
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>6820 LBJ FREEWAY
<CITY>DALLAS
<STATE>TX
<ZIP>75240
<PHONE>9729809917
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>6820 LBJ FREEWAY
<CITY>DALLAS
<STATE>TX
<ZIP>75240
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CHILIS INC
<DATE-CHANGED>19910528
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>form10q2q051.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
<html>

<head>

<title>FORM 10-Q</title>

</head>

<body link=blue vlink=purple>

<p align="center">UNITED STATES</p>



<p align="center">SECURITIES AND EXCHANGE COMMISSION</p>



<p align="center">WASHINGTON D.C. 20549</p>



<p align="center">FORM 10-Q</p>



<p align="center">QUARTERLY REPORT PURSUANT TO SECTION
13 OR 15 (d) OF THE</p>



<p align="center">SECURITIES EXCHANGE ACT OF 1934</p>







<p align="center">&nbsp;</p>







<p align=center>For
the Quarterly Period Ended December 29, 2004</p>

<p align=center>Commission
File Number 1&#8209;10275</p>





<p align=center>&nbsp;</p>





<p align="center">BRINKER INTERNATIONAL, INC. </p>



<p align="center">(Exact name of registrant as
specified in its charter) </p>





<div align="center">
  <center>





<table border="1" cellpadding="0" cellspacing="0" style="border-width:0; border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">
    <p align="center">DELAWARE</td>
    <td width="50%" style="border-style: none; border-width: medium">
    <p align="center">75-1914582</td>
  </tr>
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">
    <p align="center">(State or other jurisdiction of</td>
    <td width="50%" style="border-style: none; border-width: medium">
    <p align="center">(I.R.S. Employer</td>
  </tr>
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">
    <p align="center">incorporation or organization)</td>
    <td width="50%" style="border-style: none; border-width: medium">
    <p align="center">Identification No.)</td>
  </tr>
</table>





  </center>
</div>





<p align="center">6820 LBJ FREEWAY, DALLAS, TEXAS&nbsp; 75240<br>
(Address of principal executive
offices)<br>
(Zip Code)  </p>



<p align="center">(972) 980&#8209;9917<br>
(Registrant's telephone number,
including area code)  </p>





<p>Indicate by check mark whether the registrant (1) has
filed all reports required to be filed by Section 13 or 15 (d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.<br>
Yes <u>&nbsp;&nbsp;X&nbsp; </u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No <i>_____</i></p>



<p>Indicate by check
mark whether the registrant is an accelerated filer (as defined in Rule 12b-2
of the Exchange Act).<br>
Yes <u>&nbsp;&nbsp;X&nbsp; </u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No <i>_____</i></p>



<p>Indicate
the number of shares outstanding of each of the registrant's classes of common
stock, as of the latest practicable date.</p>



<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=319 valign=top>
  <p>Class</p>
  </td>
  <td width=319 valign=top>
  <p>Outstanding
  at February 2, 2005</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>Common
  Stock, $0.10 par value</p>
  </td>
  <td width=319 valign=top>
  <p>88,257,120
  shares</p>
  </td>
 </tr>
</table>





<hr><P STYLE="page-break-after: always"></P>&nbsp;<p align="center"> <b>BRINKER INTERNATIONAL, INC.</b></p>

<p align="center">INDEX</p>

<table border="1" cellpadding="0" cellspacing="0" style="border-width:0; border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="91%" colspan="2" style="border-style: none; border-width: medium">Part I - Financial Information</td>
    <td width="9%" style="border-style: none; border-width: medium"><u>Page</u></td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="9%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">Item 1.</td>
    <td width="81%" style="border-style: none; border-width: medium">Financial Statements</td>
    <td width="9%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">Consolidated Balance Sheets -<br>
&nbsp;&nbsp; December 29, 2004 (Unaudited) and June 30, 2004</td>
    <td width="9%" style="border-style: none; border-width: medium"><br>
    3</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="9%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">Consolidated Statements of Income<br>
&nbsp;&nbsp; (Unaudited) - Thirteen week and twenty-six week<br>
&nbsp;&nbsp; periods ended December 29, 2004 and<br>
&nbsp;&nbsp; December 24, 2003</td>
    <td width="9%" style="border-style: none; border-width: medium"><br>
    <br>
    <br>
    4</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="9%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">Consolidated Statements of Cash Flows<br>
&nbsp;&nbsp; (Unaudited) - Twenty-six week periods ended<br>
&nbsp;&nbsp; December 29, 2004 and December 24, 2003</td>
    <td width="9%" style="border-style: none; border-width: medium"><br>
    <br>
    5</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="9%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">Notes to Consolidated<br>
&nbsp;&nbsp; Financial Statements (Unaudited)</td>
    <td width="9%" style="border-style: none; border-width: medium"><br>
    6</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="9%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">Item 2.</td>
    <td width="81%" style="border-style: none; border-width: medium">Management's Discussion and Analysis of<br>
    Financial Condition and Results of Operations</td>
    <td width="9%" style="border-style: none; border-width: medium"><br>
    13</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="9%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">Item 3.</td>
    <td width="81%" style="border-style: none; border-width: medium">Quantitative and Qualitative Disclosures<br>
    About Market Risk</td>
    <td width="9%" style="border-style: none; border-width: medium"><br>
    18</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="9%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">Item 4.</td>
    <td width="81%" style="border-style: none; border-width: medium">Controls and Procedures</td>
    <td width="9%" style="border-style: none; border-width: medium">18</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="9%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="91%" colspan="2" style="border-style: none; border-width: medium">Part II - Other Information</td>
    <td width="9%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="9%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">Item 1.</td>
    <td width="81%" style="border-style: none; border-width: medium">Legal Proceedings</td>
    <td width="9%" style="border-style: none; border-width: medium">22</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="9%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">Item 2.</td>
    <td width="81%" style="border-style: none; border-width: medium">Unregistered Sales of Equity Securities and<br>
&nbsp;&nbsp; Use of Proceeds</td>
    <td width="9%" style="border-style: none; border-width: medium"><br>
    22</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="9%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">Item 4.</td>
    <td width="81%" style="border-style: none; border-width: medium">Submission of Matters to a Vote of Security Holders</td>
    <td width="9%" style="border-style: none; border-width: medium">22</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="9%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">Item 6.</td>
    <td width="81%" style="border-style: none; border-width: medium">Exhibits</td>
    <td width="9%" style="border-style: none; border-width: medium">23</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="9%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="81%" style="border-style: none; border-width: medium">Signatures</td>
    <td width="9%" style="border-style: none; border-width: medium">24</td>
  </tr>
</table>
<hr><P STYLE="page-break-after: always"></P>
<p>&nbsp;</p>


<p><b>PART I.&nbsp; FINANCIAL INFORMATION<br>
Item 1.&nbsp; FINANCIAL STATEMENTS</b></p>



<table border=1 cellspacing=0 cellpadding=0 width=680 style="border-width: 0">
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p align=center><b>BRINKER
  INTERNATIONAL, INC.</b></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p align=center><b>Consolidated
  Balance Sheets</b></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p align=center><b>(In thousands, except share and per share amounts)</b></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center><b>December
  29,<br>
  <u>2004<br>
  </u>(Unaudited)</b></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  June 30,<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <u>2004</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>ASSETS</p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>Current
  Assets:</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Cash and cash equivalents</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>$&nbsp; 120,110</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>$&nbsp; 226,762 </p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Accounts receivable </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>56,580</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>37,934</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Inventories</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>43,538</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>38,113</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Prepaid expenses and other</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>76,733</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>74,764</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Deferred income taxes</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 26,955</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 23,347</u></p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; Total current assets </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 323,916&nbsp;
  </u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 400,920</u></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>Property
  and Equipment, at cost:</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Land</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>279,524</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>283,777</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Buildings and leasehold improvements </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>1,433,244</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>1,354,671</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Furniture and equipment</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>704,539</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>666,415</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Construction-in-progress</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 75,379</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 72,818</u></p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; &nbsp;</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>2,492,686</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>2,377,681</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Less accumulated depreciation and
  amortization </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; (888,289</u>)</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; (810,835</u>)</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; Net property and equipment </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;1,604,397</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;1,566,846</u></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>Other
  Assets:</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Goodwill</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>136,021</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>158,068</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Other</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 68,845</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 81,552</u></p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; Total other assets</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 204,866</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 239,620</u></p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; Total assets</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>$2,133,179</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>$2,207,386</u></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>LIABILITIES AND
  SHAREHOLDERS' EQUITY</p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>Current
  Liabilities:</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Current installments of long-term debt </p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>$&nbsp;&nbsp; 16,068&nbsp;&nbsp;
  </p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>$&nbsp;&nbsp; 18,099</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Accounts payable</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>103,605</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>96,795</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Accrued liabilities</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>269,168</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>227,225</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Income taxes payable</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 2,082</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 37,043</u></p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp; Total current liabilities</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 390,923</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 379,162</u></p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>Long-term debt, less current installments</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>617,394</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>639,291</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>Deferred income taxes</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>75,436</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>72,453</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>Other liabilities</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>123,705</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>106,058</p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>Contingencies
  (Note 8) </p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>Shareholders'
  Equity:</p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Common stock - 250,000,000 authorized
  shares; $0.10 </p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; par value; 117,499,541 shares issued and </p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; 87,017,208 shares outstanding at December
  29,</p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; 2004, and 117,499,541 shares issued and</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; 90,647,745 shares outstanding at June 30, 2004</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>11,750</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>11,750</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Additional paid-in capital</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>353,465</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>357,444</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Accumulated other comprehensive income</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>686</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>737</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Retained earnings</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;1,316,959 </u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;1,261,647</u></p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>1,682,860</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>1,631,578</p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Less:</p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Treasury stock, at cost (30,482,333 shares
  at December</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  &nbsp;&nbsp;&nbsp; 29,
  2004 and 26,851,796 shares at June 30, 2004)</td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>(755,620)</td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>(619,806)</td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Unearned compensation</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; (1,519</u>)</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; (1,350</u>)</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; Total shareholders' equity </p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 925,721&nbsp;&nbsp;
  </u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;1,010,422</u></p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; Total
  liabilities and shareholders' equity</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>$2,133,179</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>$2,207,386</u></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">

  <p>See accompanying notes to
  consolidated financial statements.</p>
  </td>
 </tr>
 <tr height=0>
  <td width=456 style="border-style: none; border-width: medium"></td>
  <td width=6 style="border-style: none; border-width: medium"></td>
  <td width=96 style="border-style: none; border-width: medium"></td>
  <td width=122 style="border-style: none; border-width: medium"></td>
 </tr>
</table>







<hr><P STYLE="page-break-after: always"></P>

<p>&nbsp;</p>







<table border=0 cellspacing=0 cellpadding=0 width=734>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=728 colspan=6 valign=top>
  <p align=center><b>BRINKER
  INTERNATIONAL, INC.</b></p>
  </td>
  <td
  width=1><p>&nbsp;</td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=728 colspan=6 valign=top>
  <p align=center><b>Consolidated
  Statements of Income</b></p>
  </td>
  <td
  width=1><p>&nbsp;</td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=728 colspan=6 valign=top>
  <p align=center><b>(In thousands, except per share amounts)</b></p>
  </td>
  <td
  width=1><p>&nbsp;</td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=728 colspan=6 valign=top>
  <p align=center><b>(Unaudited)</b></p>
  </td>
  <td
  width=1><p>&nbsp;</td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=728 colspan=6 valign=top>

  </td>
  <td
  width=1><p>&nbsp;</td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=728 colspan=6 valign=top>
  <p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Thirteen
  Week Periods Ended</u>&nbsp; &nbsp; <u>Twenty-Six
  Week Periods Ended</u></b></p>
  </td>
  <td
  width=1><p>&nbsp;</td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>

  </td>
  <td width=113 valign=top>
  <p align=center><b>December 29,</b></p>
  </td>
  <td width=113 valign=top>
  <p align=center><b>December 24,</b></p>
  </td>
  <td width=110 valign=top>
  <p align=center><b>December 29,</b></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=center><b>December 24,</b></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>

  </td>
  <td width=113 valign=top>
  <p align=center><b>&nbsp; <u>2004</u></b></p>
  </td>
  <td width=113 valign=top>
  <p align=center><b>&nbsp; <u>2003</u></b></p>
  </td>
  <td width=110 valign=top>
  <p align=center><b>&nbsp; <u>2004</u></b></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=center><b>&nbsp; <u>2003</u></b></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>

  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=center><b>(as restated)</b></p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=center><b>(as restated)</b></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>

  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>Revenues</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$&nbsp;&nbsp; 950,793&nbsp;
  </u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$&nbsp;&nbsp; 886,490</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>$
  1,861,271 </u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>$
  1,757,388&nbsp; </u>&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>Operating
  Costs and Expenses:</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; Cost of sales </p>
  </td>
  <td width=113 valign=top>
  <p align=right>270,114</p>
  </td>
  <td width=113 valign=top>
  <p align=right>245,217</p>
  </td>
  <td width=110 valign=top>
  <p align=right>523,203</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>485,119&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; Restaurant expenses </p>
  </td>
  <td width=113 valign=top>
  <p align=right>535,020</p>
  </td>
  <td width=113 valign=top>
  <p align=right>491,242</p>
  </td>
  <td width=110 valign=top>
  <p align=right>1,045,713</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>978,763&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; Depreciation and amortization </p>
  </td>
  <td width=113 valign=top>
  <p align=right>46,397</p>
  </td>
  <td width=113 valign=top>
  <p align=right>43,366</p>
  </td>
  <td width=110 valign=top>
  <p align=right>92,336</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;85,775&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; General and administrative</p>
  </td>
  <td width=113 valign=top>
  <p align=right>42,687&nbsp;&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;&nbsp; 36,626</p>
  </td>
  <td width=110 valign=top>
  <p align=right>79,839&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>69,922&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; Restructure charges and other impairments</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,143&nbsp;&nbsp; </u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,034</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; 52,399&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,034</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp;&nbsp; Total operating costs and expenses </p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 898,361&nbsp;
  </u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 818,485&nbsp;
  </u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>&nbsp; 1,793,490&nbsp;
  </u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>&nbsp; 1,621,613</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>Operating
  income </p>
  </td>
  <td width=113 valign=top>
  <p align=right>52,432</p>
  </td>
  <td width=113 valign=top>
  <p align=right>68,005</p>
  </td>
  <td width=110 valign=top>
  <p align=right>67,781</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>135,775&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>Interest
  expense</p>
  </td>
  <td width=113 valign=top>
  <p align=right>7,081</p>
  </td>
  <td width=113 valign=top>
  <p align=right>2,933</p>
  </td>
  <td width=110 valign=top>
  <p align=right>14,200</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>6,251&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>Other,
  net</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,093</u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,127</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,535</u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 870</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>

  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>Income
  before income tax (expense) benefit </p>
  </td>
  <td width=113 valign=top>
  <p align=right>44,258</p>
  </td>
  <td width=113 valign=top>
  <p align=right>63,945</p>
  </td>
  <td width=110 valign=top>
  <p align=right>52,046</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>128,654&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>

  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>Income
  tax (expense) benefit </p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; (2,855</u>)<u>&nbsp; </u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; (20,586</u>)</p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3,266</u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; (41,422</u>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; &nbsp; Net
  income</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 41,403&nbsp; </u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 43,359</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>$&nbsp; &nbsp;&nbsp;55,312&nbsp; </u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 87,232 </u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>Basic
  net income per share</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.47&nbsp; </u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.45</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.62&nbsp; </u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.90</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>Diluted
  net income per share</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.44&nbsp; </u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.42</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.59&nbsp; </u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.85</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>Basic
  weighted average</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; shares outstanding</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 87,505&nbsp;&nbsp; </u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 96,156</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 88,633&nbsp; </u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 96,780</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>Diluted
  weighted average </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; shares outstanding</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 96,471</u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 105,531</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 97,599&nbsp; </u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 106,335</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=281 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=676 colspan=6 valign=top>
  <p>&nbsp;See accompanying notes to consolidated financial statements.</p>
  </td>
  <td
  width=58 colspan=2><p>&nbsp;</td>
 </tr>
 <tr height=0>
  <td width=5></td>
  <td width=281></td>
  <td width=113></td>
  <td width=113></td>
  <td width=110></td>
  <td width=53></td>
  <td width=57></td>
  <td width=1></td>
 </tr>
</table>

<hr><P STYLE="page-break-after: always"></P>


&nbsp;<table border=0 cellspacing=0 cellpadding=0 width=667>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p align=center><b>BRINKER INTERNATIONAL, INC.</b></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p align=center><b>Consolidated Statements of Cash Flows</b></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p align=center><b>(In thousands)</b></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p align=center><b>(Unaudited)</b></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Twenty-six
  Week Periods Ended</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>

  </td>
  <td width=102 valign=top>
  <p align=center><b>December
  29,</b></p>
  </td>
  <td width=36 valign=top>

  </td>
  <td width=96 valign=top>
  <p align=center><b>December
  24,</b></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=102 valign=top>
  <p align=center><b><u>2004</u></b></p>
  </td>
  <td width=36 valign=top>

  </td>
  <td width=96 valign=top>
  <p align=center><b><u>2003</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>

  </td>
  <td width=102 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=36 valign=top>

  </td>
  <td width=96 valign=top>
  <p align=center><b>(as restated)</b></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p>Cash Flows from Operating Activities:</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Net income</p>
  </td>
  <td width=102 valign=top>
  <p align=right>$
  55,312 </p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>$
  87,232 </p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p>Adjustments to reconcile net income to net cash</p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p>&nbsp; provided by
  operating activities:</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp; Depreciation and amortization</p>
  </td>
  <td width=102 valign=top>
  <p align=right>92,336</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>85,775</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Restructure
  charges and other impairments</p>
  </td>
  <td width=102 valign=top>
  <p align=right>52,399</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>2,034 </p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp; Gain on sale of assets</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(4,305)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;(2,454)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp; Amortization of deferred costs</p>
  </td>
  <td width=102 valign=top>
  <p align=right>3,651</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>4,936</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Gain on extinguishment of debt</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(1,750)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>-</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp; Deferred income taxes</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(598)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>1,448</p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p>&nbsp;&nbsp; Changes in assets and liabilities:</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(18,647)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;(11,571)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(5,596)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;87</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(158)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>4,249</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(2,320)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;(1,992)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income taxes</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(34,961)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>33,431</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable</p>
  </td>
  <td width=102 valign=top>
  <p align=right>6,810</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>(19,837)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities</p>
  </td>
  <td width=102 valign=top>
  <p align=right>37,434</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>40,941</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities</p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>&nbsp; 14,886&nbsp;&nbsp;
  </u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 13,618</u></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating
  activities</p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>&nbsp;194,493&nbsp;
  </u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp;237,897</u></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p>Cash
  Flows from Investing Activities:</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Payments
  for property and equipment</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(160,964)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>(153,423)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Proceeds
  from sale of assets</p>
  </td>
  <td width=102 valign=top>
  <p align=right>25,332</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>7,704</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Issuance of loan to affiliate</p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; (2,200</u>)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities</p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>(135,632</u>)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>(147,919</u>) </p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p>Cash
  Flows from Financing Activities:</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Purchases of treasury stock</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(162,893)&nbsp; </p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;(90,412)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Payments
  on long-term debt </p>
  </td>
  <td width=102 valign=top>
  <p align=right>(24,413)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>(1,411)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Proceeds
  from issuances of treasury stock</p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>&nbsp; 21,793</u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 11,548</u></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in financing activities</p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>(165,513</u>)<u>&nbsp; </u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp;(80,275</u>) </p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Net change in cash and cash equivalents</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(106,652)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>9,703</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Cash and cash equivalents at beginning of period</p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>&nbsp;226,762&nbsp;&nbsp;
  </u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 33,492</u></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Cash
  and cash equivalents at end of period&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>$120,110&nbsp; </u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>$
  43,195</u></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p>See
  accompanying notes to consolidated financial statements.</p>
  </td>
 </tr>
</table>

<hr><P STYLE="page-break-after: always"></P>


<p>&nbsp;</p>


<p align=center><b>BRINKER INTERNATIONAL, INC.<br>
Notes to Consolidated Financial Statements<br>
(Unaudited)</b></p>





<p><b>1.&nbsp; BASIS OF PRESENTATION</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The consolidated financial statements of
Brinker International, Inc. and its wholly-owned subsidiaries (collectively,
the &quot;Company&quot;) as of December 29, 2004 and June 30, 2004 and for the thirteen
week and twenty-six week periods ended December 29, 2004 and December 24, 2003,
have been prepared by the Company pursuant to the rules and regulations of the
Securities and Exchange Commission (&quot;SEC&quot;).&nbsp;
The Company owns, operates, or franchises various restaurant concepts
under the names of Chili's Grill &amp; Bar (&quot;Chili's&quot;), Romano's Macaroni Grill
(&quot;Macaroni Grill&quot;), Maggiano's Little Italy (&quot;Maggiano's&quot;), On The Border
Mexican Grill &amp; Cantina (&quot;On The Border&quot;), Corner Bakery Cafe (&quot;Corner
Bakery&quot;), and Big Bowl Asian Kitchen (&quot;Big Bowl&quot;).&nbsp; In addition, the Company owns an approximate 43% interest in the
legal entities owning and developing Rockfish Seafood Grill (&quot;Rockfish&quot;).&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The information furnished herein reflects all
adjustments (consisting only of normal recurring accruals and adjustments)
which are, in the opinion of management, necessary to fairly state the interim
operating results for the respective periods.&nbsp;
However, these operating results are not necessarily indicative of the
results expected for the full fiscal year.&nbsp;
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with accounting principles
generally accepted in the United States of America have been omitted pursuant
to SEC rules and regulations. The notes to the consolidated financial
statements (unaudited) should be read in conjunction with the notes to the
consolidated financial statements contained in the June 30, 2004 Form 10-K/A.
Management believes that the disclosures are sufficient for interim financial
reporting purposes.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Certain prior year amounts in the
accompanying consolidated financial statements have been reclassified to
conform with fiscal 2005 classifications.&nbsp;
These reclassifications have no effect on the Company's net income or
financial position as previously reported.</p>



<p><b>2.&nbsp; STOCK OPTION PLANS </b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The Company accounts for its stock based
compensation under the recognition and measurement principles of Accounting
Principles Board Opinion No. 25, &quot;Accounting for Stock Issued to Employees,&quot;
and related interpretations (&quot;APB 25&quot;), and has adopted the disclosure-only
provisions of Statement of Financial Accounting Standards (&quot;SFAS&quot;) No. 123,
&quot;Accounting for Stock-Based Compensation.&quot;&nbsp;
Under APB 25, no stock-based compensation cost is reflected in net
income for grants of stock options to employees because the Company grants
stock options with an exercise price equal to the market value of the stock on the
date of grant.&nbsp; Had the Company used the
fair value based accounting method for stock compensation expense prescribed by
SFAS No. 123, the Company's net income and earnings per share would have been
reduced to the pro-forma amounts illustrated as follows (in thousands, except
per share amounts):</p><hr><P STYLE="page-break-after: always"></P>
&nbsp;<table border=0 cellspacing=0 cellpadding=0 width=673>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=228 colspan=2 valign=top>
  <p align=center><b><u>Thirteen Week Periods Ended</u></b></p>
  </td>
  <td width=228 colspan=2 valign=top>
  <p align=center><b><u>Twenty-Six Week Periods Ended</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=center><b>&nbsp;December 29,</b></p>
  </td>
  <td width=114 valign=top>
  <p align=center><b>December 24,</b></p>
  </td>
  <td width=111 valign=top>
  <p align=center><b>&nbsp;December 29,</b></p>
  </td>
  <td width=117 valign=top>
  <p align=center><b>December 24,</b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=center><b>&nbsp; <u>2004</u></b></p>
  </td>
  <td width=114 valign=top>
  <p align=center><b>&nbsp; <u>2003</u></b></p>
  </td>
  <td width=111 valign=top>
  <p align=center><b>&nbsp; <u>2004</u></b></p>
  </td>
  <td width=117 valign=top>
  <p align=center><b>&nbsp; <u>2003</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=center><b>(as restated)</b></p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=117 valign=top>
  <p align=right><b>(as restated)</b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=117 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Net
  income - as reported</p>
  </td>
  <td width=114 valign=top>
  <p align=right>$&nbsp; 41,403&nbsp;
  </p>
  </td>
  <td width=114 valign=top>
  <p align=right>$&nbsp; 43,359</p>
  </td>
  <td width=111 valign=top>
  <p align=right>$&nbsp; 55,312&nbsp;
  </p>
  </td>
  <td width=117 valign=top>
  <p align=right>$&nbsp; 87,232</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=117 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Add:
  Reported stock-based<br>
  &nbsp; compensation expense,<br>
  &nbsp; net of taxes</p>
  </td>
  <td width=114 valign=top>
  <p align=right><br>
  <br>
  411</p>
  </td>
  <td width=114 valign=top>
  <p align=right><br>
  <br>
  344</p>
  </td>
  <td width=111 valign=top>
  <p align=right><br>
  <br>
  808</p>
  </td>
  <td width=117 valign=top>
  <p align=right><br>
  <br>
  931</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Deduct:
  Fair value based<br>
  &nbsp; compensation expense, <br>
  &nbsp; net of taxes </p>
  </td>
  <td width=114 valign=top>
  <p align=right><u><br>
  <br>
  &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5,105</u>)</p>
  </td>
  <td width=114 valign=top>
  <p align=right><u><br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; (4,921</u>)</p>
  </td>
  <td width=111 valign=top>
  <p align=right><u><br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; (9,831</u>)</p>
  </td>
  <td width=117 valign=top>
  <p align=right><u><br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; (9,512</u>)</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=117 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Net
  income - pro-forma</p>
  </td>
  <td width=114 valign=top>
  <p align=right><u>$&nbsp; 36,709&nbsp;
  </u></p>
  </td>
  <td width=114 valign=top>
  <p align=right><u>$&nbsp; 38,782</u></p>
  </td>
  <td width=111 valign=top>
  <p align=right><u>$&nbsp; 46,289&nbsp;
  </u></p>
  </td>
  <td width=117 valign=top>
  <p align=right><u>$&nbsp; 78,651</u></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=117 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Earnings
  per share:</p>
  </td>
  <td width=114 valign=top>
  <p align=right><u>&nbsp; </u></p>
  </td>
  <td width=114 valign=top>
  <p align=right><u>&nbsp;
  </u></p>
  </td>
  <td width=111 valign=top>
  <p align=right><u>&nbsp; </u></p>
  </td>
  <td width=117 valign=top>
  <p align=right><u>&nbsp; </u></p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Basic -
  as reported</p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.47&nbsp;&nbsp;
  </u></p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.45</u></p>
  </td>
  <td width=111>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.62&nbsp;
  </u></p>
  </td>
  <td width=117>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.90</u></p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Basic -
  pro-forma</p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.42&nbsp;&nbsp;
  </u></p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.40</u></p>
  </td>
  <td width=111>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.52&nbsp;
  </u></p>
  </td>
  <td width=117>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.81</u></p>
  </td>
 </tr>
 <tr>
  <td width=217>

  </td>
  <td width=114>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111>
  <p align=right>&nbsp;</p>
  </td>
  <td width=117>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Diluted
  - as reported</p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.44&nbsp;
  </u></p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.42</u></p>
  </td>
  <td width=111>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.59&nbsp;
  </u></p>
  </td>
  <td width=117>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.85</u></p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Diluted
  - pro-forma</p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.39&nbsp;
  </u></p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.38</u></p>
  </td>
  <td width=111>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.50&nbsp;
  </u></p>
  </td>
  <td width=117>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.76</u></p>
  </td>
 </tr>
</table>





<p><b>3.&nbsp; NET
INCOME PER SHARE</b></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp; Basic
earnings per share is computed by dividing income available to common
shareholders by the weighted average number of common shares outstanding for
the reporting period.&nbsp; Diluted earnings
per share reflects the potential dilution that could occur if securities or
other contracts to issue common stock were exercised or converted into common
stock.&nbsp; For the calculation of diluted
net income per share, the basic weighted average number of shares is increased
by the dilutive effect of stock options determined using the treasury stock
method and convertible debt.&nbsp; The Company had
approximately 2.6 million and 2.9 million stock options outstanding at December
29, 2004 and December 24, 2003, respectively, that were not included in the
dilutive earnings per share calculation because the effect would have been
antidilutive.&nbsp; The components of basic and diluted earnings
per share are as follows:</p>



<table border=0 cellspacing=0 cellpadding=0 width=673>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=228 colspan=2 valign=top>
  <p align=center><b><u>Thirteen Week Periods Ended</u></b></p>
  </td>
  <td width=228 colspan=2 valign=top>
  <p align=center><b><u>Twenty-Six Week Periods Ended</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=center><b>&nbsp;December 29,</b></p>
  </td>
  <td width=114 valign=top>
  <p align=center><b>December 24,</b></p>
  </td>
  <td width=111 valign=top>
  <p align=center><b>&nbsp;December 29,</b></p>
  </td>
  <td width=117 valign=top>
  <p align=center><b>December 24,</b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=center><b>&nbsp; <u>2004</u></b></p>
  </td>
  <td width=114 valign=top>
  <p align=center><b>&nbsp; <u>2003</u></b></p>
  </td>
  <td width=111 valign=top>
  <p align=center><b>&nbsp; <u>2004</u></b></p>
  </td>
  <td width=117 valign=top>
  <p align=center><b>&nbsp;&nbsp;<u>2003</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=center><b>(as restated)</b></p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=117 valign=top>
  <p align=center><b>(as restated)</b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Net
  income (a)</p>
  </td>
  <td width=114 valign=top>
  <p align=right>$&nbsp; 41,403&nbsp;
  </p>
  </td>
  <td width=114 valign=top>
  <p align=right>$&nbsp; 43,359</p>
  </td>
  <td width=111 valign=top>
  <p align=right>$&nbsp; 55,312&nbsp;
  </p>
  </td>
  <td width=117 valign=top>
  <p align=right>$&nbsp; 87,232</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Adjustment for interest
  on convertible debt, net of tax</p>
  </td>
  <td width=114 valign=top>
  <p align=right> <u>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;1,164</u></p>
  </td>
  <td width=114 valign=top>
  <p align=right> <u>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;1,224</u></p>
  </td>
  <td width=111 valign=top>
  <p align=right><u>&nbsp; &nbsp;&nbsp;&nbsp; 2,307</u></p>
  </td>
  <td width=117 valign=top>
  <p align=right> <u>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;2,682</u></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Net
  income, as adjusted (b)</p>
  </td>
  <td width=114 valign=top>
  <p align=right><u>$&nbsp; 42,567&nbsp;
  </u></p>
  </td>
  <td width=114 valign=top>
  <p align=right><u>$&nbsp; 44,583</u></p>
  </td>
  <td width=111 valign=top>
  <p align=right><u>$&nbsp; 57,619&nbsp;
  </u></p>
  </td>
  <td width=117 valign=top>
  <p align=right><u>$&nbsp; 89,914</u></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=117 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Basic weighted average
  shares outstanding (c)</p>
  </td>
  <td width=114 valign=top>
  <p align=right><br>
  87,505</p>
  </td>
  <td width=114 valign=top>
  <p align=right><br>
  96,156</p>
  </td>
  <td width=111 valign=top>
  <p align=right><br>
  88,633</p>
  </td>
  <td width=117 valign=top>
  <p align=right><br>
  96,780</p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Dilutive effect of stock
  options</p>
  </td>
  <td width=114>
  <p align=right>1,166&nbsp;&nbsp; </p>
  </td>
  <td width=114>
  <p align=right>1,575</p>
  </td>
  <td width=111>
  <p align=right>1,166&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=117>
  <p align=right>1,755</p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Dilutive effect of
  convertible debt</p>
  </td>
  <td width=114>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 7,800&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=114>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 7,800</u></p>
  </td>
  <td width=111>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 7,800&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=117>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 7,800</u></p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Diluted weighted average
  shares outstanding (d)</p>
  </td>
  <td width=114>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp; 96,471</u></p>
  </td>
  <td width=114>
  <p align=right><u><br>
  &nbsp;&nbsp; 105,531</u></p>
  </td>
  <td width=111>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp; 97,599</u></p>
  </td>
  <td width=117>
  <p align=right><u>&nbsp;<br>
  &nbsp; 106,335</u></p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Basic earnings per share
  (a)/(c)</p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.47&nbsp;
  </u></p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.45</u></p>
  </td>
  <td width=111>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.62&nbsp;
  </u></p>
  </td>
  <td width=117>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.90</u></p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Diluted earnings per
  share (b)/(d)</p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.44&nbsp;
  </u></p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.42</u></p>
  </td>
  <td width=111>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.59&nbsp;
  </u></p>
  </td>
  <td width=117>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.85</u></p>
  </td>
 </tr>
</table>



<p><b>&nbsp;</b></p>

<hr><P STYLE="page-break-after: always"></P>


<p><b>4.&nbsp; RESTRUCTURE CHARGES AND OTHER IMPAIRMENTS</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; During the first quarter of fiscal 2005, the
Company recorded a $31.2 million impairment charge resulting from the decision
to sell nine Big Bowl restaurants and to close the remaining five
restaurants.&nbsp; The decision to dispose of
Big Bowl was the result of recent research and testing of the brand's
competitive positioning.&nbsp; The impairment
charge consists of goodwill totaling $21.6 million and buildings, furniture,
and equipment totaling $9.6 million.&nbsp;
The fair value of the long-lived assets was based on an offer price
obtained in connection with the sale of the brand.&nbsp; The carrying values of the long-lived assets totaled
approximately $6.0 million at December 29, 2004.&nbsp; During the second quarter of fiscal 2005, the Company recorded an
additional charge associated with the disposition of Big Bowl totaling $4.8
million, consisting of existing lease obligations, severance costs, and the
write-off of inventory and supplies.&nbsp; In
addition, the Company made lease payments related to the closed stores totaling
$113,000 during the second quarter of fiscal 2005, reducing the lease
obligation associated with the disposition to $3.2 million at December 29,
2004.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; During the first quarter of fiscal 2005, the
Company recorded a $16.9 million charge to fully impair the investment and
notes receivable associated with Rockfish as a result of recent declines in
operating performance and lower forecasted earnings.&nbsp;&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; During the first and second quarter of fiscal
2005, the Company recorded a $1.4 million and $1.0 million charge,
respectively, related to long-lived asset impairments associated with the
closure of one Corner Bakery commissary and an existing lease obligation
associated with a sub-lease. </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; In fiscal 2004, the Company recorded a $39.5
million impairment charge resulting from the decision to close thirty
restaurants.&nbsp; The charge consisted
primarily of buildings, furniture, and equipment totaling $31.2 million, lease
obligation charges totaling $6.2 million, and the write-off of inventory and
other supplies totaling $2.1 million.&nbsp;
The fair value of the long-lived assets was based on estimates from
third party real estate brokers who examined comparable property sales values
in the respective markets in which the restaurants were located and offer
prices received from third parties in connection with the sale of the
restaurants.&nbsp; During the second quarter
and year-to-date of fiscal 2005, the Company recorded a $1.7 million and $2.9
million gain, respectively, related to the thirty closed restaurants consisting
of increases in the estimated sales value of previously impaired owned units
and decreases in the estimated lease obligation.&nbsp; The carrying values of the remaining long-lived assets totaled
approximately $4.6 million at December 29, 2004.&nbsp; In addition, during fiscal 2005 the Company made payments
totaling $2.7 million primarily related to lease termination costs, reducing
the lease obligation associated with the thirty closed restaurants to $2.4
million.</p>



<p><b>5.&nbsp;  CONVERTIBLE
DEBT</b></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp; In October 2001, the Company issued $431.7 million
of zero coupon convertible senior debentures (the &quot;Debentures&quot;), maturing on
October 10, 2021, and received proceeds totaling approximately $250.0 million
prior to debt issuance costs.&nbsp; The Debentures require no interest payments
and were issued at a discount representing a yield to maturity of 2.75% per
annum.&nbsp; The Debentures became redeemable at the Company's option on October
10, 2004.&nbsp; If redeemed by the Company, the holders of the Debentures may
elect to receive payment in cash or common stock.&nbsp; The holders may require
the Company to redeem the Debentures on October 10, 2005, 2011 or 2016, and in
certain other circumstances.&nbsp; If the holders exercise their redemption
rights, the Company may choose to pay in cash, common stock, or a combination of
the two.&nbsp; In addition, each </p>



<hr><P STYLE="page-break-after: always"></P>


<p>$1,000 Debenture is convertible into 18.08 shares (7.8 million shares in
total) of the Company's common stock if the stock's market price exceeds 120% of
the accreted conversion price for at least 20 trading days during the first 30
trading days of each quarter, the Company exercises its option to redeem the
Debentures, the credit rating of the Debentures is reduced below both Baa3 and
BBB-, or upon the occurrence of certain specified corporate transactions.&nbsp;&nbsp;&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; On December 22, 2004, the Company
exercised its right to redeem all of the Debentures.&nbsp; Holders had the option to convert the Debentures into shares of
the Company's common stock or cash until the close of business on January 20,
2005. Holders chose to convert a total of $10.8 million of the accreted
debenture value into 308,092 shares of common stock and the remaining accreted
debenture value of $262.7 million was redeemed for cash on January 24, 2005.</p>

<p><b>6.&nbsp;

SHAREHOLDERS' EQUITY</b></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the Company's stock repurchase
plan, the Company repurchased approximately 4.7 million shares of its common
stock for $162.9 million during the first two quarters of fiscal 2005, of which
3.5 million shares were acquired under forward purchase contracts settled on
October 21, 2004.&nbsp; As of December 29,
2004, approximately $132.4 million was available under the Company's share
repurchase authorizations. The Company's stock repurchase plan is used to minimize
the dilutive impact of the convertible debt and stock option exercises.&nbsp; The repurchased common stock is recorded in
treasury stock in the accompanying consolidated balance sheets.</p>





<p><b>7.&nbsp; SUPPLEMENTAL CASH FLOW INFORMATION</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for interest and income taxes for
the first two quarters of fiscal 2005 and 2004 is as follows (in thousands):</p>



<table border=0 cellspacing=0 cellpadding=0 width=600>
 <tr>
  <td width=360 valign=top>

  </td>
  <td width=120 valign=top>
  <p align=center><b>December
  29,<br>
  <u>2004</u></b></p>
  </td>
  <td width=120 valign=top>
  <p align=center><b>December
  24,<br>
  <u>2003</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>

  </td>
  <td width=120 valign=top>

  </td>
  <td width=120 valign=top>

  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Income taxes,
  net of refunds</p>
  </td>
  <td width=120 valign=top>
  <p align=right>$&nbsp;&nbsp;
  32,294 </p>
  </td>
  <td width=120 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp;
  1,974</p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Interest, net of
  amounts capitalized&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=120 valign=top>
  <p align=right>11,652</p>
  </td>
  <td width=120 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;
  6,537 </p>
  </td>
 </tr>
</table>





<p>&nbsp;&nbsp;&nbsp;&nbsp; Non-cash investing and financing activities
for the first two quarters of fiscal 2005 and 2004 are as follows (in
thousands):</p>



<table border=0 cellspacing=0 cellpadding=0 width=600>
 <tr>
  <td width=360 valign=top>

  </td>
  <td width=120 valign=top>
  <p align=center><b>December
  29,<br>
  <u>2004</u></b></p>
  </td>
  <td width=120 valign=top>
  <p align=center><b>December
  24,<br>
  <u>2003</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>

  </td>
  <td width=120 valign=top>

  </td>
  <td width=120 valign=top>

  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Retirement of
  fully depreciated assets</p>
  </td>
  <td width=120 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp; 8,690</p>
  </td>
  <td width=120 valign=top>
  <p align=right>&nbsp;$&nbsp;&nbsp;&nbsp; 5,534</p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Net increase (decrease) in fair value of
  interest rate swaps </p>
  </td>
  <td width=120 valign=top>
  <p align=right>2,238</p>
  </td>
  <td width=120 valign=top>
  <p align=right>&nbsp;&nbsp; (9,856)</p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Restricted common stock issued, net of&nbsp;&nbsp; forfeitures</p>
  </td>
  <td width=120 valign=top>
  <p align=right>1,307&nbsp;
  </p>
  </td>
  <td width=120 valign=top>
  <p align=right>2,274&nbsp;
  </p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Issuance of
  notes for sale of Cozymel's</p>
  </td>
  <td width=120 valign=top>
  <p align=right>-</p>
  </td>
  <td width=120 valign=top>
  <p align=right>&nbsp;&nbsp;
  20,194</p>
  </td>
 </tr>
</table>

<hr><P STYLE="page-break-after: always"></P>
&nbsp;<p><b>8.&nbsp; CONTINGENCIES</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; In January 1996, the Company entered into a
Tip Reporting Alternative Commitment (&quot;TRAC&quot;) agreement with the Internal
Revenue Service (the &quot;IRS&quot;).&nbsp; The
agreement required the Company, among other things, to implement tip reporting
educational programs for its hourly restaurant employees and to establish tip
reporting procedures, although employees remain ultimately responsible for
accurately reporting their tips.&nbsp; The
IRS alleged that the Company did not meet the requirements of the TRAC
agreement and retroactively and unilaterally revoked it.&nbsp; As a result of the revocation, the IRS
commenced an examination of the Company's 2000 through 2002 calendar years for
payroll tax purposes. In December 2004, the Company paid an assessment of $17.3
million for employer-only FICA taxes on unreported cash tips for the
examination period.&nbsp; The Company
recorded the $17.3 million payment in restaurant expenses in the second quarter
of fiscal 2005 and recorded a related income tax benefit of approximately $16.9
million, consisting primarily of federal income tax credits related to the
additional FICA taxes paid.&nbsp; The Company
continues to believe that it was in full compliance with the TRAC agreement and
that the IRS' retroactive revocation was unjustified, particularly in light of
compliance reviews conducted by the IRS prior to the revocation.&nbsp; Nevertheless, the Company agreed to the
resolution to avoid potentially costly and protracted litigation.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The Company is engaged in various other legal
proceedings and has certain unresolved claims pending. The ultimate liability,
if any, for the aggregate amounts claimed cannot be determined at this time.
However, management of the Company, based upon consultation with legal counsel,
is of the opinion that there are no other matters pending or threatened which
are expected to have a material adverse effect, individually or in the
aggregate, on the Company's consolidated financial condition or results of
operations.</p><hr><P STYLE="page-break-after: always"></P>





<p><b>9.&nbsp; RESTATEMENT OF PREVIOUSLY
ISSUED FINANCIAL STATEMENTS</b></p>





<p><b>&nbsp;&nbsp;&nbsp;&nbsp; </b>The
Company has corrected its computation of straight-line rent expense and the
related deferred rent liability.&nbsp;
Historically, when accounting for leases with renewal options, rent
expense has been recorded on a straight-line basis over the initial
non-cancelable lease term. Buildings and leasehold improvements on those
properties are depreciated over a period equal to the shorter of the term of
the lease, including option periods provided for in the lease, or the useful
life of the assets. The Company has determined that it should recognize rent
expense on a straight-line basis over sufficient renewal periods to equal or
exceed the depreciable life of the assets, including cancelable option periods
where failure to exercise such options would result in an economic
penalty.&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As a result of the
restatement, rent expense for the second quarter and year-to-date of fiscal
2004 increased by approximately $1.2 million and $2.4 million,
respectively.&nbsp; Additionally, diluted net earnings per share
decreased by approximately $0.01 for both the second quarter and year-to-date
of fiscal 2004.&nbsp; The restatement does
not have any impact on the Company's previously reported cash flows, sales or
comparable store sales or compliance with any covenant under its credit
facility or other debt instruments. </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The impacts
of the restatement on the consolidated statements of income for the second
quarter and year-to-date of fiscal 2004 are summarized below:</p>



<table border=0 cellspacing=0 cellpadding=0 width=640>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align="center"><b>CONSOLIDATED STATEMENT OF INCOME</b></td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align="center"><b>SUMMARY OF RESTATEMENT IMPACTS</b></td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align="center"><b>THIRTEEN WEEK PERIOD ENDED DEC 24, 2003</b></td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align=center><b>(In thousands, except per share
  amounts)</b></p>
  </td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align=center><b>(Unaudited)</b></p>
  </td>
 </tr>
 <tr>
  <td width=291 valign=top>

  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=104 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>

  </td>
  <td width=124 valign=top>
  <p align=right><b><u><font size="2">AS
  REPORTED</font></u></b></p>
  </td>
  <td width=104 valign=top>
  <p align=right><b><u><font size="2">ADJUSTMENTS</font></u></b></p>
  </td>
  <td width=118 valign=top>
  <p align=right><b><u><font size="2">AS
  RESTATED</font></u></b></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Revenues</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>$&nbsp;&nbsp; 886,490</u></p>
  </td>
  <td width=104 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>$&nbsp;&nbsp; 886,490</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Operating
  Costs and Expenses:</p>
  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=104 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; Cost of sales </p>
  </td>
  <td width=124 valign=top>
  <p align=right>245,217</p>
  </td>
  <td width=104 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=118 valign=top>
  <p align=right>245,217</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; Restaurant expenses </p>
  </td>
  <td width=124 valign=top>
  <p align=right>490,030</p>
  </td>
  <td width=104 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,212</p>
  </td>
  <td width=118 valign=top>
  <p align=right>491,242</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; Depreciation and amortization </p>
  </td>
  <td width=124 valign=top>
  <p align=right>43,366</p>
  </td>
  <td width=104 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  -</p>
  </td>
  <td width=118 valign=top>
  <p align=right>43,366</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; General and administrative</p>
  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 36,626</p>
  </td>
  <td width=104 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  -</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 36,626</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; Restructure charges and other<br>
  &nbsp;&nbsp; impairments</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,034</u></p>
  </td>
  <td width=104 valign=top>
  <p><br>
  &nbsp;&nbsp;&nbsp; &nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</u></p>
  </td>
  <td width=118 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,034</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp; Total operating costs and expenses </p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 817,273</u></p>
  </td>
  <td width=104 valign=top>
  <p>&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;1,212</u></p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 818,485</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>

  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=104 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Operating
  income </p>
  </td>
  <td width=124 valign=top>
  <p align=right>69,217</p>
  </td>
  <td width=104 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp; (1,212)</p>
  </td>
  <td width=118 valign=top>
  <p align=right>68,005</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=104 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Interest
  expense</p>
  </td>
  <td width=124 valign=top>
  <p align=right>2,933</p>
  </td>
  <td width=104 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  -</p>
  </td>
  <td width=118 valign=top>
  <p align=right>2,933</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Other,
  net</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,127</u></p>
  </td>
  <td width=104 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</u></p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,127</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Income before
  provision for income taxes </p>
  </td>
  <td width=124 valign=top>
  <p align=right>65,157</p>
  </td>
  <td width=104 valign=top>
  <p align=left>&nbsp;&nbsp;&nbsp;&nbsp; (1,212)</p>
  </td>
  <td width=118 valign=top>
  <p align=right>63,945</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Provision
  for income taxes </p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; (21,046</u>)</p>
  </td>
  <td width=104 valign=top>
  <p>&nbsp;&nbsp; &nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;460</u></p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; (20,586</u>)</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; &nbsp;Net
  income</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 44,111</u></p>
  </td>
  <td width=104 valign=top>
  <p>&nbsp; &nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(752</u>)</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 43,359</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>

  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=104 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Basic
  net income per share</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.46</u></p>
  </td>
  <td width=104 valign=top>
  <p>&nbsp; &nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;(0.01</u>)</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.45</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Diluted net income per share (a)</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;0.43</u></p>
  </td>
  <td width=104 valign=top>
  <p>&nbsp; &nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;(0.01</u>)</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.42</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Basic
  weighted average</p>
  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=104 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp; shares outstanding</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 96,156</u></p>
  </td>
  <td width=104 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 96,156</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Diluted
  weighted average </p>
  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=104 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp; shares outstanding (a)</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 105,531</u></p>
  </td>
  <td width=104 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 105,531</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
</table>

<hr><P STYLE="page-break-after: always"></P>
&nbsp;<table border=0 cellspacing=0 cellpadding=0 width=640>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align="center"><b>CONSOLIDATED
  STATEMENT OF INCOME</b></td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align="center"><b>SUMMARY OF RESTATEMENT IMPACTS</b></td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align="center"><b>TWENTY-SIX WEEK PERIOD ENDED DEC 24, 2003</b></td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align=center><b>(In thousands, except per share
  amounts)</b></p>
  </td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align=center><b>(Unaudited)</b></p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=109 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=96 valign=top>
  <p align=right><b><u><font size="2">AS
  REPORTED</font></u></b></p>
  </td>
  <td width=113 valign=top>
  <p align=right><b><u><font size="2">ADJUSTMENTS</font></u></b></p>
  </td>
  <td width=109 valign=top>
  <p align=right><b><u><font size="2">AS
  RESTATED</font></u></b></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>Revenues</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>$
  1,757,388</u></p>
  </td>
  <td width=113 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=109 valign=top>
  <p align=right><u>$
  1,757,388</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>Operating
  Costs and Expenses:</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=109 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>&nbsp; Cost of sales </p>
  </td>
  <td width=96 valign=top>
  <p align=right>485,119</p>
  </td>
  <td width=113 valign=top>
  <p>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=109 valign=top>
  <p align=right>485,119</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>&nbsp; Restaurant expenses </p>
  </td>
  <td width=96 valign=top>
  <p align=right>976,388</p>
  </td>
  <td width=113 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,375</p>
  </td>
  <td width=109 valign=top>
  <p align=right>978,763</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>&nbsp; Depreciation and amortization </p>
  </td>
  <td width=96 valign=top>
  <p align=right>85,775</p>
  </td>
  <td width=113 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=109 valign=top>
  <p align=right>85,775</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>&nbsp; General and administrative</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 69,922</p>
  </td>
  <td width=113 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=109 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 69,922</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>&nbsp; Restructure charges and other <br>
  &nbsp;&nbsp; impairments</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;2,034&nbsp; </u></p>
  </td>
  <td width=113 valign=top>
  <p>&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=109 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,034</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>&nbsp;&nbsp; Total operating costs and expenses </p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 1,619,238</u></p>
  </td>
  <td width=113 valign=top>
  <p>&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;2,375&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=109 valign=top>
  <p align=right><u>&nbsp; 1,621,613&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=109 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>Operating
  income </p>
  </td>
  <td width=96 valign=top>
  <p align=right>138,150</p>
  </td>
  <td width=113 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp; (2,375)</p>
  </td>
  <td width=109 valign=top>
  <p align=right>135,775</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=109 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>Interest
  expense</p>
  </td>
  <td width=96 valign=top>
  <p align=right>6,251</p>
  </td>
  <td width=113 valign=top>
  <p>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=109 valign=top>
  <p align=right>6,251</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>Other,
  net</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 870</u></p>
  </td>
  <td width=113 valign=top>
  <p>&nbsp; &nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=109 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 870</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>Income
  before provision for income taxes</p>
  </td>
  <td width=96 valign=top>
  <p align=right>131,029</p>
  </td>
  <td width=113 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp; (2,375)</p>
  </td>
  <td width=109 valign=top>
  <p align=right>128,654</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>Provision
  for income taxes</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; (42,323</u>)</p>
  </td>
  <td width=113 valign=top>
  <p>&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;901 </u></p>
  </td>
  <td width=109 valign=top>
  <p align=right>&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;(41,422</u>)</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>&nbsp;&nbsp; &nbsp;Net
  income</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 88,706</u></p>
  </td>
  <td width=113 valign=top>
  <p>&nbsp; <u>&nbsp;&nbsp;&nbsp;(1,474</u>)</p>
  </td>
  <td width=109 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 87,232</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=109 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>Basic
  net income per share</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.92</u></p>
  </td>
  <td width=113 valign=top>
  <p>&nbsp; &nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;(0.02</u>)</p>
  </td>
  <td width=109 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.90</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>Diluted net income per share (a)</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.86</u></p>
  </td>
  <td width=113 valign=top>
  <p>&nbsp;&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;(0.01</u>)</p>
  </td>
  <td width=109 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.85</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>Basic
  weighted average</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=109 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>&nbsp;&nbsp; shares outstanding</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 96,780</u></p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=109 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 96,780</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>Diluted
  weighted average </p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=109 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>&nbsp;&nbsp; shares outstanding (a)</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 106,335</u></p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=109 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 106,335</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
</table>





<blockquote>





<p><font size="2">(a)&nbsp;&nbsp;
Diluted
net income per share and diluted weighted average shares outstanding include
the impact of EITF 04-8, &quot;The Effect of Contingently Convertible Debt on
Diluted Earnings Per Share,&quot; which requires the 7.8 million shares associated
with the contingently convertible debt be included in diluted weighted average
shares outstanding.</font></p>
</blockquote>
<hr><P STYLE="page-break-after: always"></P>
&nbsp;<p><b>Item 2.&nbsp; MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The following table sets forth selected
operating data as a percentage of total revenues
for the periods indicated. All information is derived from the accompanying
consolidated statements of income. </p>





<table border=0 cellspacing=0 cellpadding=0 width=720>
 <tr>
  <td width=504 colspan=4 valign=top>
  <b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  13
  Week Periods Ended</b></td>
  <td width=216 colspan=5 valign=top>
  <p align=left><b>&nbsp;&nbsp;  26
  Week Periods Ended</b></td>
 </tr>
 <tr>
  <td width=312 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=center><b>Dec. 29,</b></p>
  </td>
  <td width=18 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center><b>Dec. 24,</b></p>
  </td>
  <td width=18 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=center><b>Dec.
  29,</b></p>
  </td>
  <td width=18 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center><b>Dec.
  24,</b></p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=center><b><u>2004</u></b></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center><b><u>2003</u></b></p>
  </td>
  <td width=18 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=center><b><u>2004</u></b></p>
  </td>
  <td width=18 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center><b><u>2003</u></b></p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center><b>(as restated)</b></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center><b>(as restated)</b></p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>
  <p>Revenues&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=78 valign=top>
  <p align=right><u>100.0 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>100.0 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><u>100.0 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>100.0 %</u></p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>
  <p>Operating Costs and Expenses:</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>
  <p>&nbsp; Cost of sales</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;28.4 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>27.7 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;28.1 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>27.6 %</p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>
  <p>&nbsp; Restaurant expenses</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;56.3 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;55.4 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;56.2 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>55.7 %</p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>
  <p>&nbsp; Depreciation and amortization</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp; 4.9 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;&nbsp; 4.9 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp; 5.0 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp; 4.9 %</p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>
  <p>&nbsp; General and administrative</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp; 4.5 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;&nbsp; 4.1 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;&nbsp; 4.3 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp; 4.0 %</p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>
  <p>Restructure
  charges and other&nbsp;impairments</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;<u>&nbsp;
  0.4 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 0.2 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><u>&nbsp; 2.8 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 0.1 % </u></p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>
  <p>&nbsp;&nbsp; Total operating costs and expenses</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;<u>&nbsp;94.5 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp;92.3 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;<u>&nbsp;96.4 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp;92.3 %</u></p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>
  <p>Operating income</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.5 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>7.7 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;3.6 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>7.7 %</p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>
  <p>Interest expense</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp; 0.7 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp; 0.3 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;&nbsp; 0.7 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp; 0.4 %</p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>
  <p>Other, net</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;<u>&nbsp;
  0.1 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 0.1 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;<u>&nbsp;
  0.1 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 0.0 %</u></p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>
  <p>Income before tax
  (expense) benefit</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;4.7 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>7.3 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;2.8 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>7.3 %</p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>
  <p>Income tax (expense) benefit</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp; <u>&nbsp;(0.3 %</u>)</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp;(2.4 %</u>)</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;<u>&nbsp; 0.2 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;<u>&nbsp;(2.3 %</u>)</p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=312 valign=top>
  <p>Net income</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;<u>&nbsp;
  4.4 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 4.9 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;<u>&nbsp;
  3.0 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 5.0 %</u></p>
  </td>
  <td
  width=6><p>&nbsp;</td>
 </tr>
</table>



<hr><P STYLE="page-break-after: always"></P>
&nbsp;<p>&nbsp;&nbsp;&nbsp;&nbsp; The following table details the number of
restaurant openings during the second quarter and year-to-date, total restaurants open at the end of the
second quarter, and total projected openings in fiscal 2005. </p>



<table border=1 cellspacing=0 cellpadding=0 width=711 style="border-width: 0">
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=143 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>Second Quarter</p>
  </td>
  <td width=146 colspan=3 valign=top style="border-style: none; border-width: medium">
  <p align="center">Year-to-Date</td>
  <td width=159 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>Total Open at End</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=center>Projected</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=143 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>Openings</p>
  </td>
  <td width=146 colspan=3 valign=top style="border-style: none; border-width: medium">
  <p align="center">Openings</td>
  <td width=159 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align="center">Of Second Quarter</td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align="center">Openings</td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p align=center>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p align=center>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2005</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2004</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2005</u></p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2004</u></p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2005</u></p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2004</u></p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2005</u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>Chili's: </p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Company-owned</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>23</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>20</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>37</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>38</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>780</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>726</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>77-80</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Franchised</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 4</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 8</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;11 </u></p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;13</u></p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 243</u></p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 218</u></p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 25-30</u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Total</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>27</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>28</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>48</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>51</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>1,023</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>944</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>102-110</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>Macaroni Grill:</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Company-owned</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>3</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>7</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>8</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>11</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>214</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>204</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>15-18</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Franchised</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 4</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 4</u></p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 1</u></p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 13</u></p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 9</u></p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 5-6</u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Total</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>7</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>7</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>12</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>12</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>227</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>213</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>20-24</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>Maggiano's</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>2</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>4</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>3</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>32</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>28</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>5</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>On The Border:</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Company-owned</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>2</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>113</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>114</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>8-10</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Franchised</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 18</u></p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 18</u></p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 0-1</u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Total</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>2</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>131</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>132</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>8-11</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>Corner Bakery:</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Company-owned</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>2</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>83</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>87</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>8-10</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Franchised</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 3</u></p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 3</u></p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Total</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>2</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>86</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>90</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>8-10</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>Big Bowl</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>2</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>9</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>20</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>Rockfish
  Partnership</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 1</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 3</u></p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 23</u></p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;
  23</u></p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Grand Total</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;37 </u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;38</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;67</u></p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;73</u></p>
  </td>
  <td width=74 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>1,531</u></p>
  </td>
  <td width=85 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>1,450</u></p>
  </td>
  <td width=84 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>143-160</u></p>
  </td>
 </tr>
 <tr height=0>
  <td width=176 style="border-style: none; border-width: medium"></td>
  <td width=71 style="border-style: none; border-width: medium"></td>
  <td width=71 style="border-style: none; border-width: medium"></td>
  <td width=71 style="border-style: none; border-width: medium"></td>
  <td width=78 style="border-style: none; border-width: medium"></td>
  <td width=1 style="border-style: none; border-width: medium"></td>
  <td width=75 style="border-style: none; border-width: medium"></td>
  <td width=85 style="border-style: none; border-width: medium"></td>
  <td width=84 style="border-style: none; border-width: medium"></td>
 </tr>
</table>





<hr><P STYLE="page-break-after: always"></P>


<p>&nbsp;</p>



<p><b>OVERVIEW </b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; At December 29, 2004, the Company owned,
operated, franchised, or was involved in the ownership of 1,531
restaurants.&nbsp; The Company intends to continue the expansion of its restaurant
concepts by opening units in strategically desirable markets. The Company
considers the restaurant site selection process critical to its long-term
success and devotes significant effort to the investigation of new locations
utilizing a variety of sophisticated analytical techniques. The Company intends
to concentrate on the development of certain identified markets to achieve
penetration levels deemed desirable in order to improve competitive position,
marketing potential and profitability. Expansion efforts will be focused not
only on major metropolitan areas, but also on smaller market areas and non-traditional locations
(such as airports, kiosks and food courts) that can adequately support any of
the Company's restaurant concepts. The specific rate at which the Company is
able to open new restaurants is determined by its success in locating
satisfactory sites, negotiating acceptable lease or purchase terms, securing
appropriate local governmental permits and approvals, and by its capacity to
supervise construction and recruit and train management personnel.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The
restaurant industry is a highly competitive business, which is sensitive to
changes in economic conditions, trends in lifestyles and fluctuating
costs.&nbsp; Operating margins for restaurants are susceptible to fluctuations
in prices of commodities, which include among other things, beef, chicken,
seafood, dairy, cheese, produce and other necessities to operate a restaurant
such as natural gas or other energy supplies.&nbsp; Additionally, the
restaurant industry is characterized by a high initial capital investment,
coupled with high labor costs.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Revenues
for the third quarter of fiscal 2005 are estimated to increase by 6% to 8%
compared to the same quarter in fiscal 2004, driven primarily by capacity gains
of 5% to 6%.&nbsp; Cost of sales is estimated
to be 0.2% to 0.3% higher than last year due to the impact of higher beef and
chicken costs.&nbsp; Restaurant expenses are
estimated to be 0.3% to 0.4% lower than last year as a result of potential refranchising gains.&nbsp; General and
administrative expenses should be slightly lower due to lower performance based
expenses compared to the same quarter in fiscal 2004.&nbsp; The effective tax rate during the third quarter is estimated to
be 32.3%.</p>

<p><b>REVENUES</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Revenues
for the second quarter of fiscal 2005 increased to $950.8 million, 7.3% over
the $886.5 million generated for the same quarter of fiscal 2004. Revenues for
the twenty-six week period ended December 29, 2004 rose 5.9% to $1,861.3
million from the $1,757.4 million generated for the same period of fiscal
2004.&nbsp; The increases were primarily
attributable to a net increase of 52 company-owned restaurants since December
24, 2003 and an increase in comparable store sales for the second quarter and
year-to-date of fiscal 2005 compared to the same periods of fiscal 2004. The
Company increased its capacity for the second quarter and year-to-date of
fiscal 2005 by 3.2% and 3.4%, respectively, compared to the respective prior
year periods. Comparable store sales increased 2.6% and 1.5% for the second
quarter and year-to-date, respectively, from the same periods of fiscal
2004.&nbsp; Menu prices in the aggregate
increased 2.4% for year-to-date fiscal 2005 as compared to fiscal 2004.</p>



<p><b>COSTS AND EXPENSES </b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales, as a percent of revenues, increased
0.7% for the second quarter of fiscal 2005 as compared to the same period of
fiscal 2004.&nbsp; The increase was due to a 1.1% increase in commodity prices
for meat, seafood, poultry, and produce, and a 0.5% unfavorable product mix
shift for meat and seafood, partially offset by a 0.9% increase in menu prices.&nbsp;
Cost of sales, as a percent of revenues, increased 0.5% for year-to-date fiscal
2005 as compared to the same period of fiscal 2004.&nbsp; The increase was due
to a 0.9% increase in </p>



<hr><P STYLE="page-break-after: always"></P>




<p>commodity prices for meat, seafood, poultry, produce, dairy and cheese, and a
0.4% unfavorable product mix shift for meat and seafood, partially offset by a
0.8% increase in menu prices.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Restaurant expenses, as a percent of
revenues, increased 0.9% and 0.5% for the second quarter and year-to-date
fiscal 2005, respectively, as compared to the same periods of fiscal 2004.&nbsp; The increases were primarily due to the
$17.3 million FICA tax assessment paid in resolution of the IRS dispute during
the second quarter of fiscal 2005, a $2.4 million gain recorded during the
second quarter of fiscal 2004 as a result of the sale of four Chili's to a
franchise partner and the sale of one real estate property, and increases in
labor costs and payroll taxes. These increases were partially offset by a $1.8
million gain related to the early extinguishment of certain mortgage loan
obligations, and decreases in manager bonuses and advertising costs.&nbsp; Additionally, the increases in year-to-date
fiscal 2005 were partially offset by a $3.8 million gain recorded during the
first quarter of fiscal 2005 as a result of the sale of nine Chili's
restaurants to a new franchise partner.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization increased
$3.0 million and $6.6 million for the second quarter and year-to-date fiscal
2005, respectively, as compared to the same periods of fiscal 2004.&nbsp; The increases in depreciation expense were
due to new unit construction and ongoing remodel costs, partially offset by a
decrease in depreciation related to the disposition of stores and a declining
depreciable asset base for older units.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses
increased $6.1 million and $9.9 million for the second quarter and year-to-date
fiscal 2005, respectively, as compared to the same periods of fiscal 2004. The
increases were primarily due to increased costs related to consumer research
and an increase in payroll costs resulting from an increase in headcount and
severance, partially offset by a decrease in performance based compensation. </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructure charges and other
impairments recorded during the second quarter of fiscal 2005 include an
additional $4.8 million charge associated with the decision to dispose
of Big Bowl, a $1.0 million charge for an existing lease obligation associated
with a sub-lease, and a $1.7 million gain related to the thirty restaurants
closed in fiscal 2004.&nbsp; Restructure charges and other impairments
recorded year-to-date fiscal 2005 include the charges previously mentioned, a
$31.2 million impairment charge associated with the decision to dispose of Big
Bowl, a $16.9 million charge to fully impair the investment and notes
receivable associated with Rockfish, a $1.4 million charge associated with the
closure of one Corner Bakery commissary, and a $1.2 million gain related to the
thirty restaurants closed in fiscal 2004.&nbsp;
Restructure charges and other
impairments recorded year-to-date fiscal 2004 consist of a $2.0 million loss
resulting from the sale of Cozymel's during the second quarter of fiscal 2004.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense increased $4.1 million
and $7.9 million for the second quarter and year-to-date fiscal 2005,
respectively, as compared to the same periods of fiscal 2004.&nbsp; The increases were primarily due to interest
expense related to the 5.75% notes issued in May 2004 (the &quot;Notes&quot;), partially
offset by debt issuance costs related to the convertible debt being fully
amortized in the second quarter of fiscal 2004 and a lower average outstanding
balance on the senior notes. </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net remained flat for the second
quarter of fiscal 2005 as compared to the same period of fiscal 2004.&nbsp; Increases in the Company's net savings plan
obligations were offset by no longer being required to record losses related to
Rockfish as a result of fully impairing the investment during the first quarter
of fiscal 2005. Other, net increased $665,000 for year-to-date fiscal 2005 as
compared to the same period of fiscal 2004.&nbsp;
The increase was primarily due to increases in the Company's net savings
plan obligations and the Company's share of losses in Rockfish, partially
offset by an increase in interest income associated with the investment of
proceeds received from the issuance of the Notes. </p>

<hr><P STYLE="page-break-after: always"></P>



<p><b>INCOME TAXES</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The Company's effective income tax rate decreased to 6.5% from
32.2% for the second quarter of fiscal 2005 and to a benefit of 6.3% from an
expense of 32.2% for year-to-date fiscal 2005 as compared to the same periods
of fiscal 2004. The decrease during the second quarter was primarily due to the
income tax benefit of approximately $16.9 million, consisting primarily of
federal income tax credits related to the additional FICA taxes paid as a
result of the IRS resolution.&nbsp; The
year-to-date decrease in the tax rate was also attributable to the disposition
of Big Bowl, which allowed the Company to take tax deductions for goodwill
impairment charges totaling $48.6 million ($21.6 million recorded during the
first quarter of fiscal 2005 and $27.0 million recorded in fiscal 2004.) </p>



<p><b>LIQUIDITY AND CAPITAL RESOURCES</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Working capital decreased to a deficit of
$67.0 million at December 29, 2004 from a working capital surplus of $21.8
million at June 30, 2004, primarily due to purchases of treasury stock during
the first half of fiscal 2005.&nbsp; Net cash
provided by operating activities decreased to $194.5 million for the first six
months of fiscal 2005 from $237.9 million during the same period in fiscal 2004
due to the timing of operational receipts and payments. The Company believes
that its various sources of capital, including availability under existing
credit facilities, ability to raise additional financing, and cash flow from
operating activities, are adequate to finance operations as well as the
repayment of current debt obligations.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures consist of purchases of
land for future restaurant sites, new restaurants under construction, purchases
of new and replacement restaurant furniture and equipment, and ongoing
remodeling programs. Capital expenditures were $161.0 million for the first six
months of fiscal 2005 compared to $153.4 million for the same period of fiscal
2004.&nbsp; The Company estimates that its
capital expenditures during the third quarter of fiscal 2005 will approximate
$99.0 million.&nbsp; These capital expenditures
will be funded entirely from operations and existing credit facilities. </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; In December 2004, the Company resolved a
dispute with the IRS and paid an assessment of $17.3 million for employer-only
FICA taxes. In connection with this payment, the Company also recorded an
income tax benefit of approximately $16.9 million, consisting primarily of
federal income tax credits related to the additional FICA taxes paid. </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; During the second quarter of fiscal 2005, the
Company paid $23.9 million as a result of the early extinguishment of certain
mortgage loan obligations.&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; In
January 2005, the Company redeemed all of its convertible senior
debentures.&nbsp; Debenture holders chose to
convert a total of $10.8 million of the accreted debenture value into 308,092 shares
of common stock.&nbsp; The Company redeemed
the balance of $262.7 million of the accreted debenture value for cash.&nbsp; The Company funded the redemption with cash
on hand and available lines of credit.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; During the first quarter of fiscal 2005, the
Company sold nine Chili's restaurants to a new franchise partner and received
cash proceeds totaling $12.4 million.&nbsp;&nbsp;&nbsp;
</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; In connection with the closing of thirty
restaurants in fiscal 2004, the Company expects to generate cash of
approximately $15.0 million during fiscal 2005, primarily related to the sale
of real estate.&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the Company's stock repurchase
plan, the Company repurchased approximately 4.7 million shares of its common
stock for $162.9 million during the first two quarters of fiscal 2005, of which
3.5 million shares were acquired under forward purchase contracts settled on
October 21, 2004.&nbsp; As of December 29,

</p>



<hr><P STYLE="page-break-after: always"></P>





<p>2004, approximately $132.4 million was available under the Company's share
repurchase authorizations. The Company's stock repurchase plan is used to
minimize the dilutive impact of the convertible debt and stock option
exercises.&nbsp; The repurchased common stock
is recorded in treasury stock in the accompanying consolidated balance sheets.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The Company is not aware of any other event or
trend that would potentially affect its liquidity. In the event such a trend
develops, the Company believes that there
are sufficient funds available under its credit facilities and from its
internal cash generating capabilities to adequately manage the expansion of its
business.</p>



<p><b>RECENT ACCOUNTING PRONOUNCEMENTS</b></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp; In December&nbsp;2004, the Financial
Accounting Standards Board issued SFAS No.&nbsp;123 (Revised 2004),
&quot;Share-Based Payment,&quot; (&quot;SFAS 123R&quot;), which amends SFAS No.&nbsp;123 and SFAS
No. 95. SFAS 123R requires all companies to measure compensation cost for all
share-based payments, including employee stock options, at fair value, and will
be effective for interim or annual periods beginning after June&nbsp;15, 2005.
The Company is currently evaluating the effect that this accounting change will
have on its financial position and results of operations.</p>



<p><b>Item
3.&nbsp; QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; There
have been no material changes in the quantitative and qualitative market risks
of the Company since the prior reporting period.</p>

<p><b>Item 4.&nbsp; CONTROLS
AND PROCEDURES </b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; An
evaluation was carried out under the supervision and with the participation of
the Company's management, including its Chief Executive Officer and Chief
Financial Officer, of the effectiveness of the design and operation of its
disclosure controls and procedures [as defined in Rule 13a-15(e) under the
Securities Exchange Act of 1934, as amended (the &quot;Exchange Act&quot;)], as
of the end of the period covered by this report.&nbsp; Based upon the
evaluation, the Chief Executive Officer and Chief Financial Officer concluded
that the design and operation of these disclosure controls and procedures were
effective in timely making known to them material information relating to the
Company required to be disclosed in the Company's reports filed or submitted
under the Exchange Act.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; There
were no changes in the Company's internal control over financial reporting or
in other factors that could significantly affect this control during the
quarter ended December 29, 2004, that has materially affected or is reasonably
likely to materially affect, the Company's internal control over financial
reporting.</p>

<p><b>FORWARD-LOOKING STATEMENTS</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The Company wishes to caution readers that the
following important factors, among others, could cause the actual results of the
Company to differ materially from those indicated by forward-looking statements
made in this report and from time to time in news releases, reports, proxy
statements, registration statements and other written communications, as well as
verbal forward-looking statements made from time to time by representatives of
the Company.&nbsp; Such forward-looking statements involve risks and
uncertainties that may cause the Company's or the restaurant industry's actual
results, performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by these
forward-looking statements.&nbsp; Factors that might cause actual events or
results to differ materially from those indicated by these forward-looking
statements may include matters such as future economic performance, restaurant
openings, operating margins, the availability of acceptable real estate
locations for new restaurants, the sufficiency of the </p>



<hr><P STYLE="page-break-after: always"></P>





<p>Company's cash balances and cash generated from operating and financing
activities for the Company's future liquidity and capital resource needs, and
other matters, and are generally accompanied by words such as &quot;believes,&quot;
&quot;anticipates,&quot; &quot;estimates,&quot; &quot;predicts,&quot; &quot;expects&quot; and similar expressions that
convey the uncertainty of future events or outcomes.&nbsp; An expanded
discussion of some of these risk factors follows.</p>



<p><i>Competition
may adversely affect the Company's operations and financial results.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The restaurant business is
highly competitive with respect to price, service, restaurant location,
nutritional and dietary trends and food quality, and is often affected by
changes in consumer tastes, economic conditions, population and traffic
patterns.&nbsp; The Company competes within
each market with locally-owned restaurants as well as national and regional
restaurant chains, some of which operate more restaurants and have greater
financial resources and longer operating histories than the Company.&nbsp; There is active competition for management
personnel and for attractive commercial real estate sites suitable for
restaurants.&nbsp; In addition, factors such
as inflation, increased food, labor and benefits costs, and difficulty in
attracting hourly employees may adversely affect the restaurant industry in
general and the Company's restaurants in particular.</p>



<p><i>The Company's sales volumes generally
decrease in winter months.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The Company's sales volumes
fluctuate seasonally, and are generally higher in the summer months and lower
in the winter months, which may cause seasonal fluctuations in the Company's
operating results.</p>



<p><i>Changes in governmental regulation may
adversely affect the Company's ability to open new restaurants and the
Company's existing and future operations.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Each of the Company's
restaurants is subject to licensing and regulation by alcoholic beverage
control, health, sanitation, safety and fire agencies in the state, county
and/or municipality in which the restaurant is located.&nbsp; The Company generally has not encountered
any material difficulties or failures in obtaining the required licenses or
approvals that could delay or prevent the opening of a new restaurant and
although the Company does not, at this time, anticipate any occurring in the
future, there can be no assurance that the Company will not experience material
difficulties or failures that could delay the opening of restaurants in the
future.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The Company is subject to
federal and state environmental regulations, and although these have not had a
material negative effect on the Company's operations, the Company cannot ensure
that there will not be a material negative effect in the future.&nbsp; More stringent and varied requirements of
local and state governmental bodies with respect to zoning, land use and
environmental factors could delay or prevent development of new restaurants in
particular locations.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The Company is subject to
the Fair Labor Standards Act, which governs such matters as minimum wages,
overtime and other working conditions, along with the Americans With
Disabilities Act, various family leave mandates and a variety of other laws
enacted, or rules and regulations promulgated, by federal, state and local
governmental authorities that govern these and other employment matters. The
Company expects increases in payroll expenses as a result of federal, state and
local mandated increases in the minimum wage, and although such increases are
not expected to be material, the Company cannot assure that there will not be
material increases in the future.&nbsp; In
addition, the Company's vendors may be affected by higher minimum wage
standards, which may increase the price of goods and services supplied to the
Company.</p><P STYLE="page-break-after: always"></P>






<p><i>Inflation may increase the
Company's operating expenses.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The Company has not
experienced a significant overall impact from inflation.&nbsp; As operating expenses increase, the Company,
to the extent permitted by competition, recovers increased costs by increasing
menu prices, by reviewing, then implementing, alternative products or
processes, or by implementing other cost-reduction procedures.&nbsp; There can be no assurance, however, that the
Company will be able to continue to recover increases in operating expenses due
to inflation in this manner.</p>



<p><i>Increased energy costs may
adversely affect the Company's profitability.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The Company's success
depends in part on its ability to absorb increases in utility costs.&nbsp; Various regions of the United States in
which the Company operates multiple restaurants, particularly California, have
experienced significant and temporary increases in utility prices.&nbsp; If these increases should recur, they will
have an adverse effect on the Company's profitability.</p>



<p><i>Successful mergers, acquisitions, divestitures and
other strategic transactions are important to the future growth and profitability
of the Company.</i></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp; The Company intends to evaluate potential
mergers, acquisitions, joint venture investments, and divestitures as part of
its strategic planning initiative.&nbsp;
These transactions involve various inherent risks, including accurately
assessing the value, future growth potential, strengths, weaknesses, contingent
and other liabilities and potential profitability of acquisition candidates;
the Company's ability to achieve projected economic and operating synergies;
unanticipated changes in business and economic conditions affecting an acquired
business; and the ability of the Company to complete divestitures on acceptable
terms and at or near the prices estimated as attainable by the Company.</p>



<p><i>If the Company is unable to meet its growth plan,
the Company's profitability in the future may be adversely affected.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The Company's ability to meet its growth
plan is dependent upon, among other things, its ability to identify available,
suitable and economically viable locations for new restaurants, obtain all
required governmental permits (including zoning approvals and liquor licenses)
on a timely basis, hire all necessary contractors and subcontractors, and meet
construction schedules.&nbsp; The costs
related to restaurant and concept development include purchases and leases of
land, buildings and equipment and facility and equipment maintenance, repair
and replacement.&nbsp; The labor and
materials costs involved vary geographically and are subject to general price
increases.&nbsp; As a result, future capital
expenditure costs of restaurant development may increase, reducing
profitability.&nbsp; There can be no
assurance that the Company will be able to expand its capacity in accordance
with its growth objectives or that the new restaurants and concepts opened or acquired
will be profitable.</p>



<p><i>Unfavorable publicity relating to one or more of the
Company's restaurants in a particular brand may taint public perception of the
brand.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Multi-unit restaurant businesses can be
adversely affected by publicity resulting from poor food quality, illness or
other health concerns or operating issues stemming from one or a limited number
of restaurants.&nbsp; In particular, since
the Company depends heavily on the &quot;Chili's&quot; brand for a majority of its
revenues, unfavorable publicity relating to one or more Chili's restaurants
could have a material adverse effect on the Chili's brand, and consequently on
the Company's business, financial condition, and results of operations.</p><hr><P STYLE="page-break-after: always"></P>






<p><i>Other risk factors may adversely
affect the Company's financial performance.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Other risk factors that could cause the
Company's actual results to differ materially from those indicated in the
forward-looking statements include, without limitation, changes in economic
conditions, consumer perceptions of food safety, changes in consumer tastes,
governmental monetary policies, changes in demographic trends, availability of
employees, terrorist acts, and weather and other acts of God.</p>





<hr><P STYLE="page-break-after: always"></P>



<p><b>PART II. OTHER INFORMATION</b></p>

<p><b>Item 1. &nbsp;&nbsp; LEGAL
PROCEEDINGS</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Information regarding legal proceedings is incorporated by
reference from Note 8 to the Company's consolidated financial statements set
forth in Part I of this report. </p>



<p><b>Item 2.&nbsp; UNREGISTERED SALES OF EQUITY SECURITIES AND
USE OF PROCEEDS</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Shares repurchased during the second quarter
of fiscal 2005 are as follows (in thousands, except share and per share
amounts):</p>



<table border=0 cellspacing=0 cellpadding=0 width=649>
 <tr>
  <td width=241 valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td width=126 valign=bottom>
  <p align=center><b>Total Number <br>
  of
  Shares<br>
  <u>Purchased (a)</u></b></p>
  </td>
  <td width=114 valign=bottom>
  <p align=center><b>Average <br>
  Price
  <br>
  Paid per <u><br>
  Share</u></b></p>
  </td>
  <td width=168 valign=bottom>
  <p align=center><b>Maximum Dollar
  <br>
  Value that May <br>
  Yet be Purchased <u><br>
  Under the Program</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=bottom>
  <p>September 30,
  2004 through November 3, 2004</p>
  </td>
  <td width=126 nowrap valign=bottom>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3,514,612</p>
  </td>
  <td width=114 nowrap valign=bottom>
  <p align=center>$34.31</p>
  </td>
  <td width=168 nowrap valign=bottom>
  <p align=center>&nbsp;$132,430</p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=bottom>
  <p>November 4, 2004
  through December 1, 2004</p>
  </td>
  <td width=126 nowrap valign=bottom>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  -</p>
  </td>
  <td width=114 nowrap valign=bottom>
  <p align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=168 nowrap valign=bottom>
  <p align=center>&nbsp;$132,430 </p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=bottom>
  <p>December 2, 2004
  through December 29, 2004</p>
  </td>
  <td width=126 nowrap valign=bottom>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  - </u></p>
  </td>
  <td width=114 nowrap valign=bottom>
  <p align=center><u>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=168 nowrap valign=bottom>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  $132,430</p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=bottom>

  </td>
  <td width=126 nowrap valign=bottom>
  <p>&nbsp; <u>&nbsp;&nbsp;&nbsp;3,514,612 </u></p>
  </td>
  <td width=114 nowrap valign=bottom>
  <p align=center>$34.31</p>
  </td>
  <td width=168 nowrap valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
</table>



<blockquote>



<p><font size="2">(b)&nbsp;&nbsp;
All
of the shares purchased during the second quarter of fiscal 2005 were acquired
under forward purchase contracts settled in October 2004 as part of the
publicly announced program described in Part I of this report.</font></p>





</blockquote>





<p><b>Item 4.&nbsp; SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The Company's Proxy Statement dated
September 13, 2004 for the Annual Meeting of Shareholders held on November 4,
2004, as filed with the Securities and Exchange Commission on September 13,
2004, is incorporated herein by reference.</p>



<p>(a)&nbsp;&nbsp;The Annual Meeting of Shareholders of the Company was held on
November 4, 2004.</p>



<p>(b)&nbsp;&nbsp;Each of the management's nominees, as described in the Proxy
Statement referenced above, was elected a director to hold office until the
next Annual Meeting of Shareholders or until his or her successor is elected
and qualified.</p>



<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=219 valign=top>

  </td>
  <td width=128 valign=top>

  </td>
  <td width=18 valign=top>

  </td>
  <td width=127 valign=top>
  <p align="center">Votes Against</td>
 </tr>
 <tr>
  <td width=219 valign=top>

  </td>
  <td width=128 valign=top>
  <p align="center"><u>Votes For</u></p>
  </td>
  <td width=18 valign=top>
  &nbsp;</td>
  <td width=127 valign=top>
  <p align="center"><u>or Withheld</u></td>
 </tr>
 <tr>
  <td width=219 valign=top>

  </td>
  <td width=128 valign=top>

  </td>
  <td width=18 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p>Douglas H. Brooks</p>
  </td>
  <td width=128 valign=top>
  <p align=right>79,807,328</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>979,087</p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p>Dan W. Cook, III</p>
  </td>
  <td width=128 valign=top>
  <p align=right>77,885,522</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>2,900,893</p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p>Robert M. Gates</p>
  </td>
  <td width=128 valign=top>
  <p align=right>79,012,804</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>1,773,611</p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p>Marvin J.
  Girouard</p>
  </td>
  <td width=128 valign=top>
  <p align=right>77,897,525</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>2,888,890</p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p>Ronald Kirk</p>
  </td>
  <td width=128 valign=top>
  <p align=right>79,458,293</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>1,328,122</p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p>George R. Mrkonic</p>
  </td>
  <td width=128 valign=top>
  <p align=right>77,896,807</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>2,889,608</p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p>Erle Nye</p>
  </td>
  <td width=128 valign=top>
  <p align=right>79,452,807</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>1,333,608</p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p>James E.
  Oesterreicher</p>
  </td>
  <td width=128 valign=top>
  <p align=right>77,862,011</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>2,924,404</p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p>Cece Smith</p>
  </td>
  <td width=128 valign=top>
  <p align=right>78,233,654</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>2,552,761</p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>

  </td>
  <td width=128 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>



<hr><P STYLE="page-break-after: always"></P>





<p>(c)&nbsp;&nbsp;&nbsp;The following matter was also voted upon at the meeting and
approved by the shareholders:</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp; proposal to ratify
the appointment of KPMG LLP as Independent Auditors for Fiscal 2005</p>



<div align="center">
  <center>



<table border=0 cellspacing=0 cellpadding=0 width="552">
 <tr>
  <td width=248 valign=top>
  <p>Votes
  For</p>
  </td>
  <td width=136 valign=top>
  <p align=right>80,701,023</p>
  </td>
  <td width=168 valign=top>

  </td>
 </tr>
 <tr>
  <td width=248 valign=top>
  <p>Votes
  Against</p>
  </td>
  <td width=136 valign=top>
  <p align=right>62,548</p>
  </td>
  <td width=168 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=248 valign=top>
  <p>Votes
  Abstained</p>
  </td>
  <td width=136 valign=top>
  <p align=right>22,843</p>
  </td>
  <td width=168 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
</table>



  </center>
</div>



<p>(d)&nbsp;&nbsp; The following matter
was also voted upon at the meeting and rejected by the shareholders:</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)
&nbsp;proposal regarding smoke-free policy
for all Company-owned restaurants</p>



<div align="center">
  <center>



<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=219 valign=top>
  <p>Votes
  For</p>
  </td>
  <td width=165 valign=top>
  <p align=right>6,713,485</p>
  </td>
  <td width=168 valign=top>

  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p>Votes
  Against</p>
  </td>
  <td width=165 valign=top>
  <p align=right>61,808,113</p>
  </td>
  <td width=168 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p>Votes
  Abstained</p>
  </td>
  <td width=165 valign=top>
  <p align=right>3,995,561</p>
  </td>
  <td width=168 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
</table>





  </center>
</div>





<p><b>Item 6.&nbsp; EXHIBITS </b></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp; 31(a)&nbsp; Certification by Douglas H. Brooks,
Chairman of the Board, President and Chief Executive Officer <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of the Registrant,
pursuant to 17 CFR 240.13a - 14(a) or 17 CFR 240.15d - 14(a).</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; 31(b)&nbsp; Certification by Charles M. Sonsteby,
Executive Vice President and Chief Financial Officer of the<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Registrant,
pursuant to 17 CFR 240.13a - 14(a) or 17 CFR 240.15d - 14(a).</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; 32(a)&nbsp; Certification by Douglas H. Brooks, Chairman of
the Board, President and Chief Executive Officer <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of the Registrant, pursuant to
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sarbanes-Oxley Act of 2002. </p>

<p>&nbsp;&nbsp;&nbsp;&nbsp; 32(b)&nbsp; Certification by Charles M. Sonsteby, Executive
Vice President and Chief Financial Officer of the<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Registrant, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sarbanes-Oxley
Act of 2002.</p>

<hr><P STYLE="page-break-after: always"></P>



<p>&nbsp;</p>




<p align=center><b>SIGNATURES</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the Securities Exchange Act of
1934, the Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.</p>



<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>BRINKER
  INTERNATIONAL, INC.</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>

  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>

  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>

  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>

  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>Date: February 7,
  2005</p>
  </td>
  <td width=374 valign=top>
  <p>By:<u> /s/ Douglas
  H.
  Brooks&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; Douglas H. Brooks,</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; Chairman of the Board,</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; President and Chief Executive Officer</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; (Principal Executive Officer)</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>

  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>

  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>

  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>Date: February 7,
  2005</p>
  </td>
  <td width=374 valign=top>
  <p>By:<u> /s/
  Charles M.
  Sonsteby&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; Charles M. Sonsteby,</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; Executive Vice President and</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; Chief Financial Officer</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; (Principal Financial Officer)</p>
  </td>
 </tr>
</table>



</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>2
<FILENAME>ex31a2q051.htm
<DESCRIPTION>EXHIBIT 31(A)
<TEXT>
<html>

<head>

<title>EXHIBIT 31(a)</title>

</head>

<body>

<p align="center">EXHIBIT 31(a)</p>



<p align=center><b>&nbsp;CERTIFICATION</b></p>

<p>I,
Douglas H. Brooks, certify that: </p>



<p>1.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed
this quarterly report on Form 10-Q of Brinker International, Inc.;</p>

<p>2.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my
knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;</p>

<p>3.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my
knowledge, the financial statements, and other financial information included
in this quarterly report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;</p>

<p>4.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's
other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) for the registrant and have:</p>

<blockquote>

<p>a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;</p>

<p>b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Evaluated the
effectiveness of the registrant's disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and</p>

<p>c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and</p>

</blockquote>

<p>5.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's
other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant's
auditors and the audit committee of the registrant's board of directors (or
persons performing the equivalent functions):</p>

<blockquote>

<p>a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information; and</p>

<p>b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any fraud, whether
or not material, that involves management or other employees who have a
significant role in the registrant's internal control over financial reporting.</p>

</blockquote>

<p>Date: February 7,
2005</p>





<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>

  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>

  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p><u>/s/ Douglas H. Brooks&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>Douglas H. Brooks,</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>Chairman of the Board, </p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>President and Chief Executive Officer</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>(Principal Executive Officer)</p>
  </td>
 </tr>
</table>



</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>3
<FILENAME>ex31b2q051.htm
<DESCRIPTION>EXHIBIT 31(B)
<TEXT>
<html>

<head>

<title>EXHIBIT 31(b)</title>

</head>

<body>

<p align="center">EXHIBIT 31(b)</p>





<p>I,
Charles M. Sonsteby, certify that: </p>



<ol start=1 type=1>
 <li>I have
     reviewed this quarterly report on Form 10-Q of Brinker International,
     Inc.;<br>
&nbsp;</li>
 <li>Based on my
     knowledge, this report does not contain any untrue statement of a material
     fact or omit to state a material fact necessary to make the statements
     made, in light of the circumstances under which such statements were made,
     not misleading with respect to the period covered by this report;<br>
&nbsp;</li>
 <li>Based on my
     knowledge, the financial statements, and other financial information
     included in this quarterly report, fairly present in all material respects
     the financial condition, results of operations and cash flows of the
     registrant as of, and for, the periods presented in this report;<br>
&nbsp;</li>
 <li>The
     registrant's other certifying officer(s) and I are responsible for
     establishing and maintaining disclosure controls and procedures (as
     defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant
     and have:<br>
&nbsp;<ol start=1 type=a>
  <li>Designed
      such disclosure controls and procedures, or caused such disclosure
      controls and procedures to be designed under our supervision, to ensure
      that material information relating to the registrant, including its
      consolidated subsidiaries, is made known to us by others within those
      entities, particularly during the period in which this report is being
      prepared;<br>
&nbsp;</li>
  <li>Evaluated
      the effectiveness of the registrant's disclosure controls and procedures
      and presented in this report our conclusions about the effectiveness of
      the disclosure controls and procedures, as of the end of the period
      covered by this report based on such evaluation; and<br>
&nbsp;</li>
  <li>Disclosed
      in this report any change in the registrant's internal control over
      financial reporting that occurred during the registrant's most recent
      fiscal quarter (the registrant's fourth fiscal quarter in the case of an
      annual report) that has materially affected, or is reasonably likely to
      materially affect, the registrant's internal control over financial
      reporting; and<br>
&nbsp;</li>
 </ol>
 <li>The registrant's
     other certifying officer(s) and I have disclosed, based on our most recent
     evaluation of internal control over financial reporting, to the
     registrant's auditors and the audit committee of the registrant's board of
     directors (or persons performing the equivalent functions):<br>
&nbsp;<ol start=1 type=a>
  <li>All
      significant deficiencies and material weaknesses in the design or
      operation of internal control over financial reporting which are
      reasonably likely to adversely affect the registrant's ability to record,
      process, summarize and report financial information; and<br>
&nbsp;</li>
  <li>Any
      fraud, whether or not material, that involves management or other
      employees who have a significant role in the registrant's internal
      control over financial reporting.</li>
 </ol>
</ol>&nbsp;<p>Date: February 7, 2005</p>





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  </td>
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 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p><u>/s/
  Charles M. Sonsteby&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
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 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>Charles
  M. Sonsteby,</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>Executive
  Vice President and</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>Chief
  Financial Officer</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>(Principal
  Financial Officer)</p>
  </td>
 </tr>
</table>



</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>ex32a2q051.htm
<DESCRIPTION>EXHIBIT 32(A)
<TEXT>
<html>

<head>

<title>EXHIBIT 32(a)</title>

</head>

<body>

<p align="center">EXHIBIT 32(a)</p>





<p align=center>CERTIFICATION</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to 18
U.S.C. Section 1350, the undersigned officer of Brinker International, Inc.
(the &quot;Company&quot;), hereby certifies that the Company's Quarterly Report
on Form 10-Q for the quarter ended December 29, 2004 (the &quot;Report&quot;)
fully complies with the requirements of Section 13(a) or 15(d), as applicable,
of the Securities Exchange Act of 1934 and that the information contained in
the Report fairly presents, in all material respects, the financial condition
and results of operations of the Company.</p>





<p>Date: February 7, 2005</p>





<table border="1" cellpadding="0" cellspacing="0" style="border-width:0; border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="50%" style="border-style: none; border-width: medium">By:<u>&nbsp;&nbsp; /s/ Douglas H. Brooks&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </u></td>
  </tr>
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Douglas H. Brooks</td>
  </tr>
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chairman of the Board,</td>
  </tr>
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; President and Chief Executive
    Officer</td>
  </tr>
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Principal Executive Officer)</td>
  </tr>
</table>

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>5
<FILENAME>ex32b2q051.htm
<DESCRIPTION>EXHIBIT 32(B)
<TEXT>
<html>

<head>

<title>EXHIBIT 32(b)</title>

</head>

<body>

<p align="center">EXHIBIT 32(b)</p>





<p align=center>CERTIFICATION</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to 18
U.S.C. Section 1350, the undersigned officer of Brinker International, Inc.
(the &quot;Company&quot;), hereby certifies that the Company's Quarterly Report
on Form 10-Q for the quarter ended December 29, 2004 (the &quot;Report&quot;)
fully complies with the requirements of Section 13(a) or 15(d), as applicable,
of the Securities Exchange Act of 1934 and that the information contained in
the Report fairly presents, in all material respects, the financial condition
and results of operations of the Company.</p>







<p>Date: February 7, 2005</p>







<table border="1" cellpadding="0" cellspacing="0" style="border-width:0; border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="50%" style="border-style: none; border-width: medium">By:<u>&nbsp;&nbsp; /s/ Charles M. Sonsteby&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </u></td>
  </tr>
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charles M. Sonsteby</td>
  </tr>
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Executive Vice President and</td>
  </tr>
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Financial Officer</td>
  </tr>
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="50%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Principal Financial Officer)</td>
  </tr>
</table>

</body>

</html>
</TEXT>
</DOCUMENT>
</SUBMISSION>
